Originally posted by: KuJaX
Originally posted by: DaShen
Originally posted by: Glavinsolo
Like do you wake up when the stock market opens and buy and sell with your streaming charts and conference calls going on from your distant friends that also trade? Do you make good money doing this? Are you not answering because the market is still open?
Sounds interesting
Nope and I will never be one, but I do know a few that are extremely successful and pulling in 6-7 figure incomes.
Know them personally? Daytraders love to boust about their good days where they made $1000 but never talk about their average days where they lose more than $800 or will NEVER speak of their days where they lost $4000.
It is worse than a zero-sum "game". It is considered worse than zero sum because of expenses that are around that there is no way to avoid: commissions, the spread, software costs, data feed costs, etc. Even if you looked at it as gambling, thinking "i'll buy right now and i have a 50% chance of winning," it really isn't like that because you have to count in all of the other costs mentioned above. Statistics (or atleast what THEY say) is that 90% of daytraders will lose money, of the 90% that lose money, 5% will lose their entire account. out of 100%, 5% will make money. I read that daytraders that make money average out $58,000 a year.
Although making thousands with no effort (well a click of a button) is what makes daytrading look so attractive. Trade from anywhere in the world, at any time, make grundles of money. This is the reason why so many people lose all of their money, or wise up and quit before they lose it all, and why for every person that quits doing it, someone else starts. The only people making money are the brokerages, instritutions, software companies, datafeed companies, online daytrading chatrooms, and "i'll sell you my idea's and secrets" books and seminars/conventions.
Trust me when I say this: I know PERSONALLY (yes, know their full name, address, phone number, talk to them fairly frequently, etc) of about 15 people that have lost well over $200,000+ EACH and I know 0 people, yep ZERO, ZIP, NADDA that has made money over the course of more than 6 months.
Chances are that anyone here that respondes probably has an account with less than $10,000. Do note that the smaller account size that you have, even more drastic and faster you will be knocked out of the game, because regardless if your account is $10,000 or $1,000,000, you'll still be paying upwards of $150 - $500 a month in software and other data related fee's, not including commissions per trade. So if your account is $10,000, and you pay $500 in monthly fee's that don't include commissions, you'll be paying 5% of your account in monthly expenses, while if you had a million dollar account, you are only shelling out .05% of your account in monthly expenses. Hence, the smaller your account, the better likely hood of you saying bye bye to $10k
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